Committing To Your Mortgage Until Debt Do You Part

This post is contributed and contains affiliate links. By clicking on links I will not be compensated. All the views, thoughts, and/or opinions expressed in this article are those of the authors. I was financially compensated for the sharing of this article.

For the majority of us, mortgages are a staple way of life. It’s certainly the only way to see a steady roof over our heads. While more millennials are now opting to rent, most don’t see it as a long-term option. The rental market is too unstable, and the risk of eviction hardly works for a family. Hence why we all book a meeting with a mortgage broker the moment our monthly incomes stretch to it.

The trouble with a mortgage, of course, is that it’s the largest loan you’ll take in your life. It’s so big, in fact, that your repayment plan will likely stretch into your later life. On the surface, you may see that long repayment term as a blessing. But, with the average homeowner taking out a thirty-year mortgage, there are some worries here. Your financial situation can change untold amounts in that time. Yet, you’re committing to set monthly payments. That can fast lead to trouble when your situation changes.

Lucky for you, there are a few ways to make sure you keep up with payments throughout your mortgage journey. And, we’re going to look at what they are.

Earn from more than one avenue

We’re in the age of the ‘side hustle’, and it may pay to jump on that bandwagon. Relying on one income source to sustain such a long-term payment plan would be a mistake. Jobs fold, and companies change. As such, it’s unlikely you’ll keep the same position for a thirty-year period. But, that doesn’t need to cause panic if you have a reliable side hustle. Ideally, you want something which sees a pretty good return, such as a blog or an online shop. These are pursuits you can engage in part-time, yet each could become full-time efforts if your situation needed it. Hence, unemployment wouldn’t be half as scary as it would otherwise. More importantly, you could keep on top of your mortgage.

Plan for the worst

It’s also worth noting that those with mortgages could benefit from planning for the worst. Say that you received an injury which left you unable to work. A disability policy from a company like Guardian Life could keep you financially afloat regardless. Even if they refused to pay out, you would then be within your rights to contact a Guardianship lawyer who could help get your mortgage paid. Hence, you would remain debt free, even if you were unable to ever work again.

Keep your savings stocked

This last point doesn’t take a genius. Any homeowner should also look after their money by keeping plenty in savings. Even with the above precautions, there may be months where you struggle to meet your payments in full. While most mortgage lenders make allowances, anything you don’t pay will carry over. And, that could lead to a snowballing debt. By keeping plenty in savings, you can always dip into the pot if your earnings aren’t up to scratch. And, never a mortgage payment will you miss.

 - - - - - 

Happy Tuesday friends. I hope you are having a wonderful week. I think I am coming down with a cold. More than likely, its due to the sudden autumn weather we are experiencing here in the Pacific Northwest. Chilly temperatures and lots of rain. 

Thanks for visiting us today. 

Until next time my friends. 

Post a Comment

I Am Natasha